Question: I'm looking for a business to take me out
of the Navy. I need something with low start-up costs and
overhead--a business that could start as a part-time venture and
bloom into something full time. Do you have any suggestions?

Name withheld

Answer: Many full-time businesses can be started from
home on the side. In fact, that's the preferable way to start
out on your own, because you can test the viability of your idea
and go through the learning curve while you still have additional
income coming in. The best sideline businesses don't require a
lot of marketing or administrative tasks, leaving you free to
devote your limited time to income-producing work. So you'll
want to choose a service or product that's in high demand and
easy to sell. Also, your business should have flexible hours so you
can run it after or around your workday.

Here are our picks for the top 10 businesses that could meet
these criteria, including low start-up costs, from our upcoming
book, Best Home Businesses for the 21st Century (Tarcher):

1.Cleaning service

2.Gift basket business

3.Web merchant

4.Mailing list service

5.Microfarming (small plots of land for such
high-value crops as mushrooms, edible flowers, sprouts and so
on)

While all these businesses meet the criteria you listed, that
doesn't necessarily mean one is the right business for you.
Here are three more criteria--perhaps the most important ones your
business should meet:

1. It's something you truly enjoy doing.

2. You know enough about the business to do well at it (or
are willing to invest time learning while you still have a
job).

3. You can identify a specific, easily reachable market for
the business.

Often the best opportunities are quite unique to the business
owner. For example, a woman who wanted to be at home with her
children had an inspiration: Since her husband collects bow ties,
she decided to sell handmade bow ties over the Internet. An
aerospace engineer had been an avid amateur photographer for years
before starting a sideline photography business. By the time his
job was downsized, he already had a growing clientele. These
businesses certainly wouldn't work for everyone, but each was
an ideal match for its owner. So look closely at your interests,
skills and assets, and consider how you can use them to meet the
needs of individuals or companies who would gladly pay for your
help.

Before You Bid Farewell . . .

Once your business is consistently earning enough income to
cover your living and business expenses, you're ready to go
full time. But don't give notice before taking these steps:

Determine when any company benefit plans you have will vest or
increase in value. It would be a shame to quit two weeks before the
value of your retirement benefits increase from 40 to 60
percent.

Find out when you'll receive benefit money. This could help
you plan your financing.

Before leaving--while you're still covered by corporate
insurance--get all annual health exams and routine procedures done.
Check out whether your group coverage can be converted to an
individual policy at favorable rates or if other health coverage
options are open to you.

Take out a home equity line of credit before leaving your job.
Having a line of credit to draw upon is invaluable during the first
two years you're in business, although you probably won't
qualify for one once you leave your job until your business has
been successful for more than two years.

Pay off or pay down the balance on your credit cards while
you're still generating a steady income. This helps your credit
rating and enables you to finance various start-up costs.

Contact Source

If you have a question regarding a start-up business issue,
contact Paul and Sarah Edwards at http://www.paulandsarah.com or
send it to "What's Your Problem?," Entrepreneur, 2392
Morse Ave., Irvine, CA 92614.